Good money habits to adopt

Having a good spending habit is not only for people who earn a lot or have banging account balances. It is about the proper management of funds, regardless of the amount. The benefit of having good money habits eventually reveals itself in the form of better maximisation of funds and the generation of wealth. In order to manage your funds effectively and grow your wealth, below are some good money habits that should become part of your everyday life. 

Decrease recurring payments

Only you, Netflix, Spotify, YouTube premium, IrokoTv, Amazon prime, Showmax, and you say you never chop? Subscribing to these services equals recurring monthly charges, and some of these charges that are automatically deducted from your bank account are responsible for draining your account, especially when you don’t use the apps as often as possible. If you pay ₦4,000 monthly for Netflix, that means in a year alone, you spend ₦48,000 on subscription and you still haven’t added the other apps you have subscribed to. Cutting down on these charges is a great way to maximise your funds and channel them into other things with more priority. Unless you utilise the apps as regularly as you can, unsubscribing from some services is a good money habit, and it will benefit you in the long run.

Autosave your funds

The only time you should feel comfortable with money being automatically deducted from your bank account is when it is for saving. If you know you are the type of person who is not disciplined enough to deduct from your earnings to save, your saviour is auto-saving. Generally, saving is a good money habit to adopt. However, it will be easier when you don’t have to battle between buying that sumptuous-looking food tray from that online food vendor and saving for rainy days. You could request your bank service provider to remove a particular sum of money from your bank account each month, weekly or daily, or download a savings application like PiggyVest or CowryWise to deduct the money for you. Either way, you are saving money without having to worry about it.

Don’t live paycheck-to-paycheck

Whether you have to restock your pantry, get a new dress or go out for dinner with your girls, living above your salary is not a good way to spend your money. It is wise not to spend all that you have received before a new one comes, even if you saved from it. Saving is not the only way to guarantee to have a good money habit. Living below or within your salary does not mean you should drink garri when you can afford rice. It simply means that you should spend your money in a way that all your expenses are covered and there is still extra money that will roll over when the next paycheck comes in. Monitoring your spending, budgeting and avoiding spending lavishly and impulse buying are ways that can help you not to spend more than you earn. 

In debt? Avoid it!

People collect loans for many reasons, but having too many outstanding debts is not a good way to treat your incoming funds. A good money habit you should embrace is cutting down on collecting loans and paying off outstanding ones as fast as possible. Having debts is like an endless whirlpool, and you will be sucked in if you do not break that cycle. Run away from accumulating debts because, in truth, collecting a loan or being in debt is just a quick fix and it is as temporary as the moon. When the effects of the debt wear off, you will realise that you have dug a deeper hole than you were before.

Invest, Invest, and Invest

There is nothing like having too many investments. Investments always yield returns, and it is a smart way to spend your money while earning it back. The main goal of investments is to generate income as the asset acquired will appreciate over a period of time. Assets appreciate when their original value is a paltry sum of what they are currently worth. You could buy shares, stocks, or own properties, but ensure to educate yourself on the benefits and risks of each investment type you want to venture into. Jumping into investments because “people said it’s good” is not a smart money move to make you know.